Which form of money could be the right one?

money, week 14

There are many forms of money in the world. You have traditional paper money, digital money and cryptocurrency money here. In today’s increasingly digital world, it is important to know the finances around us. If we look back at our history, we find that money has already taken many forms, and it all started with a barter trade, where people exchanged things they needed.

Why it matters

Today’s world is rich for various forms of finances. It is also often difficult to know them and grasp their meaning correctly. It is definitely important to maintain and expand financial literacy to find out about all forms of money that can be found at this time. The best form of money should be covered by something valuable (such as gold), voluntarily accepted by others in exchange for various goods and services, usable for daily transactions and scalable in an almost unlimited way to meet the needs of an ever-evolving economy.

What you can find

The most traditional form, which can be found today, is the so-called fiat money. You can find them all over the world, in the form of banknotes or in a bank account. It is used worldwide and for everyday operations. However, the truth is that they are not issued by the state, but by central banks, and not many currencies are backed by anything rare today. In contrast, gold is something valuable, and it is clear that most people would be willing to accept it in exchange for services or goods. However, it is not used for everyday transactions and for good reasons – it does not meet the needs of our growing economy.

On the other side of the barricade there are cryptocurrencies and stablecoins. For cryptocurrencies, the assessment is a bit complicated, because it is basically a currency that is fully digital, is not backed by anything, and it is still hard for majority of people to use in everyday life. However, the digitization of society can change this approach.

What you can do

If you are not sure how to distinguish the individual forms from each other and which form is suitable the most for your needs, test it for yourself. Try our cryptocurrency and if you do not understand, how it works, contact us or take a look at our educational videos.

Source: dailyhodl.com

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